Stinson v. Edgemoor Iron Works, Inc.

53 F. Supp. 864, 1944 U.S. Dist. LEXIS 2687
District Court, D. Delaware·Decided February 9, 1944·No. Civil Action No. 343·Published·Cited by 6 cases

Opinion

LEAHY, District Judge.

This matter concerns defendant’s motion to dismiss the complaint. Two separate causes of action are alleged, based on two separate contracts of employment. The first is based upon a claim for percentages of profits alleged to be due plaintiff, covering the period from January 1, 1942, to February 21, 1943. To this cause of action defendant filed its answer and served an offer of judgment upon plaintiff. We are not here concerned with this portion of the complaint. For a second cause of action, plaintiff alleged he was employed by defendant for one year from February 22, •1943, under a contractual arrangement reached on March 12, 1943, but retroactive to February 22, 1943, at an annual salary of $8,200. Breach is alleged by plaintiff’s wrongful discharge on March 17, 1943, and by reason thereof he became entitled to damages in an amount representing the balance of his unpaid salary. Defendant’s motion to dismiss is on the ground that plaintiff failed to state a cause of action.

Defendant argues that the applicable law supports its motion; and as this court is bound by Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188, 114 A.L.R. 1487, to apply the law of Delaware in matters of substance, the case of Ogden-Howard Co. v. Brand, 7 Boyce, Del., 482, 108 A. 277, 8 A.L.R. 334, is applicable and controls. Due to the importance of that case for the decision here, it must preliminarily have our exclusive attention. In Ogden-Howard Co. v. Brand the plaintiff sued in debt for breach of an employment contract, alleging that the unpaid balance of his stipulated salary was his damages. The Supreme Court of Delaware reversed a judgment for the plainitff and held that an action of debt would not lie because the action was not one for a sum certain. The parties differ in their interpretation of this decision. The plaintiff contends that all the court decided was that debt was not the proper form of action. Defendant, on the other hand, contends that it is implicit in the case that the burden of pleading and proving damages and mitigation in cases of breach of employment contracts rests squarely upon a plaintiff. From this, defendant argues it is not the burden of defendant to plead in mitigation of damages that plaintiff has or could have procured other employment reasonably adapted to his abilities. If this is not so under the Delaware law defendant says the action of the court in the Ogden-Howard case would have been entirely different in that the court would have sustained the action in debt and held that plaintiff had a prima facie right to recover the contract price, with the burden on defendant to prove the amount received or which might have been received by the plaintiff from other employment after his discharge.

First, defendant’s argument must be tested by this proposition: If, however, the action of debt would likewise not lie in Delaware, even though mitigation was specifically pleaded by an allegation that plaintiff was entitled to the balance of the contract price because after the use of due diligence he was unable to secure other employment, then the Ogden-Howard case does not impel the conclusion that the Delaware law, as a matter of substance, imposes on the plaintiff here the burden of pleading and proving mitigation. My conclusion is that an action of debt would not lie in such a case in the Delaware courts. A quick reference to the historical development of [866] the action of debt will, I think, support my conclusion.

In early times,1 the writ of debt seems to have been a writ of right for money and the action to have been a real action.2 The conception of the courts of that time was that the debtor was holding back something which he had granted, and which therefore actually belonged to the creditor, not that the debtor was merely under an obligation to pay money. Indeed, the action lay for chattels as well as for money. Our present conception of that jural relationship which we have labelled “a contract” was not its essence and debt never lay to recover damages for the breach of promises or covenants.3 The action of debt came to be the proper action for the recovery of a debt ex nomine and in numero, and though damages were generally awarded for the detention of the debt, they were in most instances merely nominal. 1 Chitty, Pleading (16th Am. Ed.) 121. That debt lies only where the sum is certain or can be readily reduced to a certainty by mathematical computation became firmly established. The early cases lay much stress upon the requirement that the claim sued upon must be for a definite amount. In fact, a plaintiff in an action of debt failed if the amount proved differed in any respect from the claimed amount.4 [867] But, it was not long before the courts were allowing plaintiffs to recover a smaller sum than that stated in the writ if the obligation proved was for a specific amount. For example, in Rudder v. Price, 1 H.Bl. 547, 550, Lord Loughborough suggests that, while the demand in an action of debt must have been for a sum certain, yet it was by no means so necessary that the amount be set out so precisely that less could not be recovered. See, too, Ingledew v. Cripps, 2 Ld. Raymond 814.

It became the settled law in England ever since the early Young and Ashburnham’s case, C.P.1587, 3 Leon. 161, that a promise to pay so much as certain services or goods were worth, would not support a count in debt, as the price must be fixed. In that case, the defendant took lodging at the inn of the plaintiff, but there was no price “in certain” agreed upon between the parties. It was held that an action of debt would not lie. Moreover, debt never lay to recover damages for the breach of promises or covenants. See Maitland, Forms of Action at Common Law, p. 63.

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Stinson v. Edgemoor Iron Works, Inc., 53 F. Supp. 864, 1944 U.S. Dist. LEXIS 2687 (D. Del. 1944).

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